A company making plastic car parts buys new molding machines to expand its production capacity. The machines cost $3 million, with additional charges for delivery and installation totaling $47,758. Employees will have to be trained to use the new machines at the cost of $34,024. With the increased production, accounts payable will increase by $57,446, inventory will increase by $70,358, and accounts receivable will increase by $71,928 at the outset. These changes in the working capital will be recaptured at the end of the projects life of 5 years. The depreciable life of the machines is 10 years, and the company uses straight-line depreciation. The increased production will increase the sales revenue by $4 million and the costs (including depreciation) by $468,365 per year in each of the next 5 years. The company expects to sell the machines after five years for $329,704. The companys tax rate is 20%, and its cost of capital (the projects required rate of return) is 10.65%. Compute Initial Outlay (IO)